Does your Boston high rise condo have equity?

Here in Boston with never ending high rise condo prices in the news a lot lately and much of the focus has been on whether Boston high rise condo prices are accelerating too quickly. One of the often-overlooked benefits of rising Boston condo prices, however, is the impact that they have on a homeowner’s equity position.

What is home equity in a high rise condo?

Home equity is defined as the difference between the home’s fair market value and the outstanding balance of all liens (loans) on the property. While Boston high rise condo owners pay down their mortgages, the amount of equity they have in their homes climbs each time the value of their homes go up.

According to the latest Equity Report from ATTOM Data Solutions, “13.9 million U.S. properties in Q2 2018 were equity rich — where the combined estimated balance of loans secured by the property was 50 percent or less of the property’s estimated market value — representing 24.9% of all U.S. properties with a mortgage.”

This means that nearly a quarter of Americans who have a mortgage would be able to sell their homes and have a significant down payment toward their next home. Many who sell could also use their new-found equity to pay off high-interest credit cards or help children with tuition costs.

The map below shows the percentage of properties with a mortgage in each state that were equity rich in Q2 2018.

Boston high rise condos

Conclusion

If you are a homeowner looking to take advantage of your home equity by moving up to your dream Boston high rise condo building, let’s get together to discuss your options